UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Embraer
In a report published Wednesday, Citigroup reiterated its Neutral rating on Embraer (NYSE: ERJ), and raised its price target from $27.00 to $30.00.
Citigroup noted, “We rate Embraer shares Neutral. Embraer is one of the leading regional jet manufacturers and the only one that (currently) produces (mid-sized) 100-seat commercial jets. On one level, we recognize Embraer as a global leader in the space, owing to its very high product quality and its solid management. On another front, however, we cannot ignore growing competitive threats (Sukhoi's smaller variant SSJ is recently entered the market, the CSeries in 2013, etc.). We are also concerned that the company's potential move to re-engine its EJets commercial jet could eventually come into service, just as the aerospace cycle has peaked. On the flipside, we also recognize that Brazil's Rousseff administration seems keen to support this company (and we could eventually see more modest growth in the company's defense business). Although we see the company benefiting from a continued positive Brazilian government posture towards defense companies, we now also believe that much of this is priced in.”
Embraer closed on Tuesday at $27.60.
Latest Ratings for ERJ
|Jun 2016||Deutsche Bank||Maintains||Buy|
|May 2016||Goldman Sachs||Maintains||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.